SignLayoutReferencesMailingsIS investigating three funding sources.ConSantana's sister Cicely is willing to invest $86,000 in the business as a commonshareholder. Because Santana currently has about $129,000 invested in thebusiness, Cicely's investment will mean that Santana will maintain about 60%ownership and Cicely will have 40% ownership of Business Solutions.Santana's uncle Marcello is willing to invest $86,000 in the business as a preferredshareholder. Marcello would purchase 860 shares of $100 par value, 7% preferredstock.• Santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. Shewould make monthly payments of $1,000 per month for 10 years.Order ChecksRequired:a) Prepare the journal entry to reflect the initial $86,000 investment under each of the options.(Clearly show debit and credit sides, while also indicating if each of the accounts isincreasing or decreasing.)ge: Since Last StatemeIncrease(Yes /No)Decrease(Yes/No)DebitАссountDebitCredit-$100.78Cash86,000Common Stock86,000-$1.88Issuance of common stockCashPreferred stock$16.55Issuance of preferred stockCash$23.62 3Notes payable-$33.00b) Evaluate the three proposals for expansion, providing the pros and cons of each option.(Minimum 70 words)c) Which option do you recommend Santana adopt? (Minimum 40 words)d) Imagine Business Solutions was not successful, but instead was accumulating losses, andthe only option was to get a $100,000, 10-year note payable to get a cash influx and keep-$32.60-$43.27-$43.17Page 1 of 2500 wordsO Focus138%tv AMacBook AirF9F10FI1

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Santana's sister Cicely is willing to invest $86,000 in the business as a comm shareholder. Because Santana currently has about $129,000 invested in business, Cicely's investment will mean that Santana will maintain about 60 ownership and Cicely will have 40% ownership of Business Solutions. • Santana's uncle Marcello is willing to invest $86,000 in the business as a preferr shareholder. Marcello would purchase 860 shares of $100 par value, 7% preferr stock. Santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. SE would make monthly payments of $1,000 per month for 10 years. red:

Santana's sister Cicely is willing to invest $86,000 in the business as a comm shareholder. Because Santana currently has about $129,000 invested in business, Cicely's investment will mean that Santana will maintain about 60 ownership and Cicely will have 40% ownership of Business Solutions. • Santana's uncle Marcello is willing to invest $86,000 in the business as a preferr shareholder. Marcello would purchase 860 shares of $100 par value, 7% preferr stock. Santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. SE would make monthly payments of $1,000 per month for 10 years. red:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 59P

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A ACCT 2010 Final Exam Mailings nvestigating three funding sources. Review View Santana's sister Cicely is willing to invest $86,000 in the business as a comm shareholder. Because Santana currently has about $129,000 invested in ti business, Cicely's investment will mean that Santana will maintain about 60 ownership and Cicely will have 40% ownership of Business Solutions. Santana's uncle Marcello is willing to invest $86,000 in the business as a preferre shareholder. Marcello would purchase 860 shares of $100 par value, 7% preferre stock. Santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. Sh would make monthly payments of $1,000 per month for 10 years. equired: a) Prepare the journal entry to reflect the initial $86,000 investment under each of the options. (Clearly show debit and credit sides, while also indicating if each of the accounts is increasing or decreasing.) Increase Decrease (Yes / No) (Yes / No) Account Debit Credit Cash 86,000 Common Stock…
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